Positioning and macro factors shift the market skew to positive, but investors should still focus on buying high-quality assets, according to Tony Pasquariello, global head of hedge funds coverage at Goldman Sachs Group Inc.
The S&P 500 Index is riding a seven-session winning streak as data show that the US economy is holding up, earnings growth is broadening beyond the technology giants that dominate the market, and the Federal Reserve has ammunition to start cutting interest rates as soon as in September. Fund positioning is also favorable for US stocks.